12 U.S.C. § 4904 — Notification upon cancellation or termi-

Page 1771 TITLE 12—BANKS AND BANKING § 4905 1 See References in Text note below. Pub. L. 105–216, set out as an Effective Date note under section 4901 of this title. The Real Estate Settlement Procedures Act of 1974, referred to in subsec. (c), is Pub. L. 93–533, Dec. 22, 1974, 88 Stat. 1724, which is classified principally to chapter 27 (§ 2601 et seq.) of this title. For complete classifica- tion of this Act to the Code, see Short Title note set out under section 2601 of this title and Tables. AMENDMENTS 2000—Subsec. (a)(1). Pub. L. 106–569, §§ 402(c)(2)(A)(i), 403(b)(1)(A), substituted ‘‘residential mortgage trans- action (other than a residential mortgage transaction described in section 4902(g)(1) of this title)’’ for ‘‘resi- dential mortgage or mortgage transaction (other than a mortgage or mortgage transaction described in sec- tion 4902(f)(1) of this title)’’ in introductory provisions. Subsec. (a)(1)(A)(ii)(IV), (B)(iii). Pub. L. 106–569, § 402(c)(2)(A)(ii), (iii), substituted ‘‘section 4902(g) of this title’’ for ‘‘section 4902(f) of this title’’. Subsec. (a)(2). Pub. L. 106–569, §§ 402(c)(2)(B), 403(b)(1)(B), substituted ‘‘residential mortgage trans- action’’ for ‘‘mortgage or mortgage transaction’’ and ‘‘section 4902(g)(1) of this title’’ for ‘‘section 4902(f)(1) of this title’’. Subsec. (c). Pub. L. 106–569, § 403(b)(2), substituted ‘‘subsection (a)(3)’’ for ‘‘paragraphs (1)(B) and (3) of sub- section (a)’’. Subsec. (d). Pub. L. 106–569, § 403(b)(3), inserted before period at end ‘‘, which disclosures shall relate to the mortgagor’s rights under this chapter’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 1 year after July 29, 1998, see section 13 of Pub. L. 105–216, set out as a note under section 4901 of this title. § 4904. Notification upon cancellation or termi- nation (a) In general Not later than 30 days after the date of can- cellation or termination of a private mortgage insurance requirement in accordance with this chapter, the servicer shall notify the mortgagor in writing— (1) that the private mortgage insurance has terminated and that the mortgagor no longer has private mortgage insurance; and (2) that no further premiums, payments, or other fees shall be due or payable by the mort- gagor in connection with the private mortgage insurance. (b) Notice of grounds (1) In general If a servicer determines that a mortgage did not meet the requirements for termination or cancellation of private mortgage insurance under subsection (a) or (b) of section 4902 of this title, the servicer shall provide written notice to the mortgagor of the grounds relied on to make the determination (including the results of any appraisal used to make the de- termination). (2) Timing Notice required by paragraph (1) shall be provided— (A) with respect to cancellation of private mortgage insurance under section 4902(a) of this title, not later than 30 days after the later of— (i) the date on which a request is re- ceived under section 4902(a)(1) of this title; or (ii) the date on which the mortgagor sat- isfies any evidence and certification re- quirements under section 4902(a)(3) 1 of this title; and (B) with respect to termination of private mortgage insurance under section 4902(b) of this title, not later than 30 days after the scheduled termination date. (Pub. L. 105–216, § 5, July 29, 1998, 112 Stat. 903.) Editorial Notes REFERENCES IN TEXT Section 4902(a)(3) of this title, referred to in subsec. (b)(2)(A)(ii), was redesignated section 4902(a)(4) of this title by Pub. L. 106–569, title IV, § 404(1)(C), Dec. 27, 2000, 114 Stat. 2958. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective 1 year after July 29, 1998, see section 13 of Pub. L. 105–216, set out as a note under section 4901 of this title. § 4905. Disclosure requirements for lender paid mortgage insurance (a) Definitions For purposes of this section— (1) the term ‘‘borrower paid mortgage insur- ance’’ means private mortgage insurance that is required in connection with a residential mortgage transaction, payments for which are made by the borrower; (2) the term ‘‘lender paid mortgage insur- ance’’ means private mortgage insurance that is required in connection with a residential mortgage transaction, payments for which are made by a person other than the borrower; and (3) the term ‘‘loan commitment’’ means a prospective mortgagee’s written confirmation of its approval, including any applicable clos- ing conditions, of the application of a prospec- tive mortgagor for a residential mortgage loan. (b) Exclusion Sections 4902 through 4904 of this title do not apply in the case of lender paid mortgage insur- ance. (c) Notices to mortgagor In the case of lender paid mortgage insurance that is required in connection with a residential mortgage transaction— (1) not later than the date on which a loan commitment is made for the residential mort- gage transaction, the prospective mortgagee shall provide to the prospective mortgagor a written notice— (A) that lender paid mortgage insurance differs from borrower paid mortgage insur- ance, in that lender paid mortgage insurance may not be canceled by the mortgagor, while borrower paid mortgage insurance could be cancelable by the mortgagor in ac-